In an age where advertising is “just part of our surroundings, a kind of cultural backdrop”, [13] is machine learning the key to standing out and creating lasting impressions? Originally for FILM 240 - Media & Culture at Queen's University

1. Machine Learning
The Next Revolution in Online Advertising
Cameron Hudson | FILM240: Media & Culture
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2. With paid media,
advertisers are paying
per click or per view [1], so
every ad needs to be carefully
chosen to lead to an
impression
Image from Rayi Christian Wicaksono via Unsplash

3. It’s about targeting:
Showing the
right people the
right product at the
right time
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4. “Marketers are putting a premium on
the ability to unearth data about
consumers to improve ad
targeting.” [2]
-Wall Street Journal
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5. “This requires an ability to capture
data and turn that data into value for the
customer by combining big and little data” [3]
-Harvard Business Review
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6. “More data has been created in the past two
years than in the entire previous history of
the human race” [4] but…
That data is growing fast:
-Forbes
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7. We’re not doing anything
with it, “only about 0.5
percent of that
data is ever
analyzed”[5]
-MIT Business
Review
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8. USEthat much data?
So how do we
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9. Machine Learning (ML) is
about writing algorithms
that let computers
learn to interpret data
and perform tasks and to
automatically improve their
accuracy [6]
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10. The ML algorithm
looks for correlations
in data and adjusts
behavior of a service,
such as ad insertion,
based on what it’s
been given
It also improves
performance as new
data is processed
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11. And Machine Learning
is already all around us:
Apple’s Siri uses
machine learning to
better understand
user requests
based on past
experience[7]
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12. A machine learning algorithm can identify
which market segments are
reacting to an ad and target
future campaigns
based on what it
learns[8]
In advertising,
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13. Media6Degrees, a machine learning
company, partnered with researchers at
NYU Stern School of Business to apply
machine learning to targeted display
advertising[9]
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14. Working for a shoe
brand, the researchers
consistently exceeded
the client’s target
return on investment by
220%, at times by up to
1000%[9]
The results
impressed:
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15. In a head to head test against
traditional ad networks for
car brand Infiniti, the
machine learning
algorithm delivered
3x more clicks on
ads[9]
8x
more
actions
towards a
sale[9]
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16. To Infiniti,
Increasing
actions is more
valuable since
“digital interactions
influenced 36 cents of every
U.S. dollar spent in a retail store
[…] in 2013”[10] -Gian Fulgoni
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17. Marketing
firms are
starting to
notice,
collaborating
with computer
science
researchers
to get more
value from
their data[11]
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18. -VentureBeat
[12]
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19. In an age where advertising is “just part of
our surroundings, […] a kind of cultural
backdrop”,[13] machine learning may be
the key to standing out and creating
lasting impressions
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20. Sources 1
[1] Matrix, S. (2017, January 31). The New Media Landscape: Integrated Marketing Mix &
Communications. FILM240 Media & Culture. Kingston, Ontario, Canada: Queen's
University.
[2] Marshall, J., & Vranica, S. (2015, June 27). Business News: In Cannes, Advertisers Try On
Digital. Wall Street Journal.
[3] Bonchek, M. (2014, October 10). Making Sense of Owned Media. Harvard Business Review.
[4] Marr, B. (2015, September 30). Big Data: 20 Mind-Boggling Facts Everyone Must Read.
Retrieved from Forbes: https://www.forbes.com/sites/bernardmarr/2015/09/30/big-
data-20-mind-boggling-facts-everyone-must-read/#5503a04917b1
[5] Regalado, A. (2013, May 3). The Data Made Me Do It. MIT Technology Review.
[6] Hern, A. (2016, June 28). Google says machine learning is the future. So I tried it myself. The
Guardian.
[7] Weinberger, M. (2016, September 3). Apple is facing a crisis of salesmanship. Business
Insider.
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21. Sources 2
[8] Shortland, R., & Scarfe, R. (1995). Digging for Gold. IEEE Review, 5(41), 213-217.
[9] Perlich, C., Dalessandro, B., Raeder, T., Stitelman, O., & Provost, F. (2014, April). Machine
learning for targeted display advertising: transfer learning in action. Machine
Learning, 95(1), 103-127.
[10] Fulgoni, G. (2014, December). “Omni-Channel” Retail Insights and The Consumer’s Path-to-
Purchase . Journal of Advertising Research, 54(4), 1-4.
[11] VerticalNews. (2014, May 3). Addictive Mobility Collaborates With University of Toronto to
Strengthen Their Data Scientist Team. Marketing Weekly News, p. 75.
[12] VB Staff. (2016, December 5). How machine learning and AI will impact your marketing
forever. Retrieved from VentureBeat: http://venturebeat.com/2016/12/05/how-
machine-learning-and-ai-will-impact-your-marketing-forever-vb-live/
[13] Matrix, S. (2017, January 24). Promotional Media & Analyzing Adverts: Consumer Culture.
FILM240 Media & Culture. Kingston, Ontario, Canada: Queen's University.
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